Using DVC Financing

[WolfpackFan]

I'd like to hear from anyone that has used the DVC financing to buy into DVC. I realize that the interest rates are rather high, but it seems that it would make it a whole lot easier to "get in the door" so to speak. My question is this - if I go this route; are there any early payment penalties and can I make extra payments each month that go against the principal and how difficult is it to do this? My plan is to just sign on the line and go with their financing (the 10 year option probably) and then just pay an extra $500/month until it is paid off. UNLESS I get one of those real low interest charge card offers which I seem to get every week and then I'll just move the balance to the low interest card. My big decision is whether to go with MB or not. It would be nice to reduce my overall cost with the MB but I sure hate to loose my first years points also. Probably our first use for DVC will be a DCL cruise taking along our 23 yo DD and 29 yo DS (neither married) with using points for two years to pay for an inside cabin for DD and DS to share (they say that is fine with them) and pay cash for a balcony cabin for my wife and myself. Thanks for any info on my questions re. DVC financing.

PS - before anyone suggests that I open a home equity loan for DVC, I can't already maxed out on my HE.

 

[JOC]

Hi WolfpackFan,
I haven't used DVC financing but I'm looking into it right now for an add-on. DVC financing is currently 9.75% for 3, 5, 7 or 10 year loans. There are no penalties for early payment and yes, you can put more money towards the principal every month.

 

[Coach Rick]

We financed ours through Disney, and it was flawless. As far as the interest rate, as it is a bit high, I did not find it objectionable, and tax decuctable. Plus they paid all the closing cost. If it's easy your looking for, well it doesn't get any easier. As JOC mentioned, there is no prepayment penalties.

 

[WolfpackFan]

Thanks for the replies. Just what I was hoping to hear. More than likely I won't keep the DVC financing long. Everyday I get special offers of 3-4% interest for the life of the transaction on numerous credit cards - so more than likely I'll move the balance within six months or so and I plan to have the entire thing paid off within 1-2 years.

 

[InstImpres]

I have financed with them twice. It is about 1-2% higher than other places but it is flawless. Also, they are much more lenient on credit ratio (sounds like that could be an issue for you). The other advantae is it does not show up on your credit report at all. Therefore, noone but you and DIS know you have this expense.

Good luck
Sandy

 

[WolfpackFan]

Originally posted by InstImpres
Also, they are much more lenient on credit ratio (sounds like that could be an issue for you)

Not really. Though I'm at the max on my HE (various home repairs). I have no credit card debt.

 

[RweTHEREyet]

Hi there Wolfpack Fan. Wanted to let you know that we are from the same area. I live in Raleigh, work in Cary.

We bought into DVC in 1999, bought at OKW. We did MB and financed through Disney. It was a super easy process once we got the ball rolling. Hard part was deciding to do so, and I can honestly echo most everyones sentiments of why didn't we do it sooner. We bought 150 points to start, and yes, it was hard to give up that first years points. There are a lot of folks that do not think MB is such a great deal right now, that you could rent your points out and get the same cash return. We used the MB to take care of most of the deposit when we bought.

We have made most all of our stays in a studio (there are just 3 of us) and that makes those 150 points go a lot further. We have always tried not to borrow too many points, but this year our son will start the Disney College Program and we will be making a lot of trips between June and January, so borrowing looks like it may be in our future.

We also did a 100 point add-on at the Beach Club and I would like to do one at Saratoga Springs when it becomes available.

The hardest thing for me, using your scenario, would be using the points for the Cruise Line. I don't think that the value is there for the amount of points that they ask. If points were unlimited, that would be one thing, but to know I could not stay at WDW because my points went for the cruise wouldn't work for me.

Since, we are both local, if you ever wish to talk on the phone, let me know. My husband and I would be glad to answer any questions you may have or share any experiences that we have had with DVC.

Good luck with your decision.

P.S. We are Wolfpack fans, too, hubby graduated from NCSU.

 

[WolfpackFan]

Originally posted by RweTHEREyet
Hi there Wolfpack Fan. Wanted to let you know that we are from the same area. I live in Raleigh, work in Cary.

Thanks so much for the reply. Wow, talk about being neighbors. I live in Cary and work in Raleigh (State Gov't). We must pass each other each morning. Buying into DVC has been an on-going process for about a year for us. We went to a DVC presentation last June and it's just taken a year for me to convince myself it's the right thing to do. I'm a couple of years away from retirement and my dream is to spend a good part of every January down in Florida once I retire. I see joining DVC as part of achieving my dream. I figure about mid-January to head down - spend a week at a DVC resort, a week possibly at Vera Beach, a week on a cruise and a week down at Key West, which we absolutely love. You know how messy our weather is here in January and I just want to get away from it all once we retire. Then once we get too old to do this (hopefully a long time off), I'll just pass our DVC membership down to our son and daughter until the membership expires in 2040. As far as using points to cruise - we love cruising about as much as we do WDW - I know the points exchange isn't that great, but we've been planning on a family cruise with our son and daughter for next year. We won't be able to go to WDW untill at least year after next, so taking this years points and next years points would just about cover an inside cabin for son and daughter and we'll just pay cash for my wife and myself.

Sure is nice to meet another Wolfpack fan. I got my BS in Computer Science there in 1973 and my MS in 1982. We love Wolfpack football and basketball.

Talk to you later.

 

[WolfpackFan]

Question for RweTHEREyet (or anyone for that matter) -

I thought of something I wanted to ask - have you ever used DVC points to stay at the Grove Park Inn (in Asheville)? The points exchange value for Grove Park appear to be very, very good (compared to alot of the other non-DVC resorts). We love the mountains and I could see us staying at the Grove Park on points often.

 

[RweTHEREyet]

We considered it, but I have to say, that so far we have only used our DVC points for DVC resorts. After years of having sticker shock upon check out at resorts like Grand Floridian, Beach Club, etc., it is so wonderful to stay at DVC, have nicer accommodations than the hotel rooms and then to check out and have a next to nothing resort bill. About the only charge we ever have is for phone calls (at .35 each) for connecting to the internet several times a day. There is no huge credit card bill when we get home, and it is wonderful.

When we last checked into trading into the Grove Park, there was a fee to make the change, don't remember the amount, and I think it took about 30-35 points per night. When I consider that depending on the time of year, we can get a studio at OKW for as many as 4 nights for those same points and no fee, it makes it too hard for me to justify not using them at WDW.

Now, if I by chance had some points I was going to lose for some reason, the Grove Park would be looking pretty darn good.

 

[RweTHEREyet]

Just saw your first post. Well, unless you are travelling 540 every day, we aren't making the same commute.

The only thing I can almost guarantee you is that if you are heading to WDW on an average of once a year, it is a decision you should not think twice about.

Am sending you a PM.

 

[sitchu2]

Wolfpack Fan

I was just in the same boat as you and I decided I just could not stand the 975% so I tore up the mortgage papers and just used a 0% for 6 months credit card for the purchase.

You can benifit from this , If you have a large enough credit line to do this you can use a card with frequent flier miles, cashback , or as I used the new disney cc. The bonus can help you pay for park tickets, or airfare.

DVC accepts visa and Mastercard. I figured I would transfer the bal to one of the offers I get in the mail and keep a 0% rate until I can pay it off .

(as far as im concerned 0% is a better deal than a tax deduction.

Good luck whatever you decide!!

 

[WolfpackFan]

Originally posted by sitchu2
DVC accepts visa and Mastercard. I figured I would transfer the bal to one of the offers I get in the mail and keep a 0% rate until I can pay it off .

Hum, interesting - I didn't realize this. All of a sudden I have a real reason to use my new Disney Card.

 

[sitchu2]

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